Felonius Inc. has just paid a dividend of $$1\mathrm{.}32$ per share. The firm pays annual dividends, and analysts do not expect any changes in the payout ratio of the firm. It is expected by analysts that the earnings of Felonius will grow by $9\%$ per year over the next five years. After that, the earnings will most likely grow at the current industry average of $4\mathrm{.}5\%$ per year. The cost of capital is $12\mathrm{.}0\%.$ What is Felonius$$s share price?

Question $18$ Answer

a$.$

$$28\mathrm{.}30$

b$.$

$$20\mathrm{.}64$

c$.$

$$16\mathrm{.}06$

d$.$

$$22\mathrm{.}15$